TLDR
24-year-old Dutch law student arrested for €4.5M ($4.6M) crypto fraud
Approximately 300 victims defrauded through investment scheme
Suspect required €5,000 minimum investment with 50% profit fee
Operated alleged Ponzi scheme while being known as “crypto genius”
Continued accepting new investors despite scheme’s collapse
Dutch authorities have arrested a 24-year-old law student from Hengelo, Netherlands, in connection with a cryptocurrency investment fraud that allegedly defrauded 300 people of approximately €4.5 million ($4.6 million).
The suspect, who remains unnamed in accordance with Dutch privacy laws, operated as both a law student and professional soccer player while managing investments on behalf of clients, including family members, friends, and fellow athletes.
According to local news outlet Oost, the man had built a reputation as a “crypto genius” among his peers, who believed he had achieved substantial profits through digital asset trading. He required a minimum investment of €5,000 from participants and charged a 50% fee on claimed profits.
The investment scheme began to unravel when the suspect made a series of high-risk cryptocurrency trades that resulted in substantial losses. Reports indicate the total losses ranged between €1.5 million and €4.5 million, including the suspect’s personal funds.
Following the financial collapse, the suspect and his brother sent emails to their clients informing them of the losses. The situation escalated when some victims began harassing the suspect, prompting him to seek police protection.
Law enforcement initially placed him in a secure location for his safety. However, subsequent investigation revealed that he had allegedly continued to accept new investors even as his company approached insolvency.
The fraud came to light after victims organized and formed a foundation to represent their interests. This foundation provided crucial evidence to law enforcement authorities, leading to a months-long investigation.
Fraud & Embezzlement Charges
Police have charged the suspect with fraud and embezzlement. The investigation revealed characteristics of a Ponzi scheme, where money from new investors was allegedly used to pay returns to earlier participants.
The case has drawn attention from Dutch financial authorities, who noted that the suspect operated without proper licensing or registration for investment services.
Local authorities report that many victims were drawn into the scheme through personal connections, creating a web of trust that extended through social and professional networks.
The suspect’s dual status as a law student and soccer player helped establish credibility among potential investors, who viewed his educational background as a sign of legitimacy.
Investigators found that the suspect maintained detailed records of investments and communications with clients, which are now being used as evidence in the case.
The arrest comes amid a broader increase in cryptocurrency-related fraud cases globally, with losses reaching $2.3 billion in 2024, marking a 40% increase from the previous year.
Dutch prosecutors are currently preparing the case for trial, with the suspect remaining in custody as proceedings continue.
The most recent development involves authorities working to trace and recover any remaining assets that might be returned to victims of the scheme.
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